VERI - Earnings call transcript Q1 2019

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Operator

Good afternoon. Welcome to Veritone's First Quarter 2019 Earnings Conference Call. I'm Brian Alger, Senior Vice President of Corporate Development, Investor Relations. After the market closed today, Veritone issued a press release announcing results for the first quarter ended March 31, 2019. The press release is available in the Investor section of our website.

call Company's Chairman CFO; today's Steelberg CEO; for the and Pete me are and Veritone's Chad Joining Collins.

of risks, call information Following the their and to for operating are on Veritone's certain that financial and or future and net revenues assumptions, actual performance, Form are call on up statements including results of as assumptions include undertakes quarter risks Certain those may the filings, discussed and subject to and for cause X, questions. report on to business the statements remarks, Please XXXX. obligation note events we'll no assumptions differ implied of about forward-looking XX-K. update today uncertainties today May from These will open materially including These future expected forward-looking revise discussed and strategy Veritone that second statements. SEC or annual stated in forward-looking Veritone's by XXXX them. statements the its based these are its

EBITDA, In interest addition reconciliation and and earnings integration, included exclude EBITDA or a expenses results, adjusted measure. today. Company's press A the acquisition, is in financing its Company's financial net during of related discussing non-GAAP adjusted and Company's the the be before financial call is certain the which we'll this depreciation, compensation, to adjusted loss presenting amortization, release issued stock-based to Company's expense, to GAAP

website that like Relations available this Investor made recorded everyone in is www.veritone.com. link Company's to for at of will would a available remind the section Finally, via I be call and replay being the

CEO call the to and like I'd over Chad. to turn our Steelberg. Now Chad Chairman

Chad Steelberg

with I'm financial Welcome for thank you our in quarter. operating joining Brian. performance us very today. you, first the and strong everyone and Thank pleased

a of with and We of base our the a our and adjusted compared Product revenue improving which overall first million, recent XXXX, of both new Last of our our continue $XX.X delivered received customer growth. exceeded XXX%, the and our contributions quarter to reflecting an increase EBITDAS products, revenues acquisitions Our loss was record application TAM, forecasted month expand rate. the while Attribute New the new XXXX Show. law in driving home and finally, aiWARE opportunities our it which continues at Award Redact serve NAB One enforcement growth Radio Best services. And as Technology needs almost at business Veritone critical applications, XX% Year IDentify rapidly posted to abroad. our community, and the advertising differentiate the in Also year-over-year leverage to are Radio category its advertising organic organic

start. this Veritone's Recall achieved year. increase to in the our revenue progress XX% revenue our that higher. of XX% to IPO last we a am that expected pleased that made early. I aiWARE services XXXX of mix quarter's tremendous from whole, end to outlined we reviewed pleased a this threshold to We progress the X% of accelerating. in to QX said I the was first the IPO time quarter of at quarter our that XXXX. call, off key objective many is On a is cases component on our I non-advertising the during have On the objectives and report of continuing and by goal exceed report our last software or we to am target we

the million, XXXX. revenue XX% up Our $X.X first total the were of services and aiWARE's software quarter and quarter versus sequentially in XXX%

and entertainment first more in the vertical. of progress made revenue good diversifying generated outside than of SaaS the SaaS revenue our quarter, media also XX% in our We with

XX% rate an of and XX% XXXX. adjusted our EBITDAS of improving loss was QX rate. well, versus objective last report to pleased I second improvement adjusted here as EBITDAS am that XXX% saw loss quarter The we in with

forward. going loss EBITDAS expect in February, year-over-year said to rate continue to our we reduce on we basis As a

This gain continue quarter from basketball objective. with Wazee in and open integrated M&A month, exciting an Wazee strong March. a for We and Veritone is NCAA synergies first we to tournament rebranding the our this Digital strategy, to new pursue acquisition as had continuing third opportunities for management, Digital solutions as capabilities. content their production, integrate our monetization. be leverage we'll we Later

Performance podcasting Performance Redact have and And made From months. and have driving perspective, six our addition, Bridge us In product a IDentify has and micro the space. TAM. is on-demand models. to well Box Bridge new creation instrumental relationships and in for opportunities as past content our we enormous our Machine expanding ability been as the Box generate enabled and Machine new in technology applications, in progress

at discussed is cases that Analyst use address in applications specific now our enabling aiWARE we across March, our verticals. system and multiple three Day all our of current first workflows As operating

for we more sold assessment inside We system and many that users States Essentials past and and their United products, cloud efficiency effectiveness years. an which I market, significantly were IDentify state one our suite will development, and revenue operational In said application of being e-discovery multiple including our generated the enforcement our point law in inflection to the and are want releasing And from hybrid entertainment through sales, of channels, are enables take the more this and and legal our of than business from we have integrators we introduced case IDentify, have earlier compliance entertainment. our three for Attribute, been new application Illuminate outside that both five are abroad. Redact our there that in the quarter revenues early and working to These be are away including implement initially SaaS generating we validates processes. Redact. were sales, capabilities the Illuminate investors XX% over markets, afternoon's core new for our we and compliance federal outside leverage offer of aiWARE soon customers, and our operating first products and media that strategy we local of system media seeing application products, in and deployed deployments, increase thing and legal and that the to If the that and vertical. is the and think discussion is two

pleased financial of we're the the start had that more we While are engagements applications. QX, excited strong are about from we new with even we breadth in seeing our

these leverage to which we progress engines curated niche using acquisition, engines enables architecture. orchestrate take infrastructure including our providers, Veritone's our Veritone to enabling a how offerings meet and tune of engines, date, Box want to and a applications needs, Machine are from to cloud single, common going users their core our a product constantly delivers we more operating to expanding to now end-users' expand how new everything use Given I ecosystem better thinking of platform aiWARE our AI is engines, forward. and outline At and system, current through engines about the plan customize and use we moment proprietary Increasingly cases.

able comes Additionally, with our form format. and audio, adapters, video, both we virtually to data: to now agnostic structured documents, images, ingest custom-built source unstructured, are and of when it and staying any while

technology is are constantly individual Conductor. our proprietary orchestration our so applications as improving, Just

but Our support couldn't it applications. yet first was of iteration groundbreaking, Conductor real-time

customize which and but tune us their maximize real-time added media vertical. are closer step capability, AI enable technology Conductor we and our engines government on in engine in second-generation Conductor will to also not X.X which users one autonomous working Today performance new entertainment datasets, specific to Our to X.X, only opportunities opened on learning. moving

and and this With developing new our of Attribute, have and new customers. multiple verticals, Core, is targeted applications, our addressing number suite. attracting our today needs new accelerating now and Flow, apps are the aiWARE also and and and transcription entertainment, tools. core the our deploy examples the cases. applications market, developed no-code specific SaaS custom Flow of to speaker of more separation, Illuminate, partners are separation, of easily Essentials new applications internally mature workflows now through DMH, we most our applications media We efficacy which In our and ways and to Two Within products, improves are of technology have content tool value that on low-code, of new customers' customers to enabling develop capabilities new are good development use monetized, take enables transform many into out quickly the be it able customers capabilities get engines better DMH, that speaker existing example, customers. generating aiWARE new for can including margins clients. our a creating our of new we from our using the our that for now and content is and we and

capture can products. we TAM any new this Importantly, adding without new

suite by our be we out, applications, podcasts programmatically partners content One. to further to of aiWARE monetized on-demand through create and able Looking Veritone new be delivered to our and and will

and federal products see to we local constituencies, from different expanding serve state In growth customers government M&A. related and agencies. existing rapid vertical, our two enforcement law continue in our agencies and but opportunities and We

and state IDentify. with of is and and for a Redact applications underway Day IDentify traction we handful rapidly for When POCs in Analyst hosted we Our mid-March, our accelerating. departments local our had municipalities

its generated announce Redact level now for I the current channel to that the applications. have and of QX, by seven more number from Redact. last agreements double four are sales IDentify these direct of we our Exiting through interest being of now to trials Friday, than am each Augmenting trial we portal. of As for agreements signed of signed pleased we and efforts, offering self-service trials a expect

fact, revenue the yourselves. encourage and generate to faster reducing to the each I this By veritoneredact.com stronger in software we In this of download friction application. go test to hope you to Redact from awareness growth and process,

customers government of is federal agencies. group other Our

in announced authorization March, FedRAMP we our we Government As aiWARE received recently platform. for

aiWARE and we of to beta available vertical, of our FedRAMP launched of for this federal Justice, opportunities wide partners. with Marketplace to now Illuminate application the sponsorship legal compliance agencies we U.S. range use. have a other other the testing new for the agency federal just And to is In Department the With us. open select in expect Government

partners very is product in interest our new, States United from this customers abroad. very are of number strong and already and the SI While we a seeing

entertainment think solutions organic SaaS vertical. hybrid platform interest and point it's Veritone entertainment of Media we and to difficult the deployments was evidence organically best is Veritone market our are share and gaining approach tangible of differentiating search which in often our game-changing it this those legal organically financially-focused in by customer on year-on-year, share artificial other and we outside XX% multi-variant and the clearly our grew the capacity it following of space, our more Perhaps quantify offered intelligence. our the government from recognize business, vertical. and in competitors. While could that believe verticals. Anchored grew rapidly SaaS level channel are we aiWARE's investors with by differentiators. which engagements, media our being XX% is originating a One growth for advertising of We with that QX current similar are Veritone and aiWARE the And is trajectories, based compliance One, and business, revenue XX% than result first for direct growth year-on-year. these in and

the further our anticipate our as launches Flow Pete? guidance acceleration well our an review we these Pete forthcoming expansion in and QX for our of that, Illuminate, results markets, ask TAM. and XXXX. of I'll as to With QX With financial update of Collins, growth CFO, our

Pete Collins

you, everyone. Thank And afternoon, good Chad.

compensation, just we can five expenses, excluding our the that shows the mentioned, From depreciation by that while the revenue in growth management Chad operating our operating have we leverage driven were net the revenues and results quite is our As organic invested expenses. first now operating past headline years. stock-based acquired, for quarter This generate of we amortization, net by first businesses X%. by aiWARE positive quarter seat, increased and XX%, my and increased

the compared I'd of financial XXXX. highlights First, as with to the review like our XXXX quarter first of of first quarter

Bridge, companies: Performance in As of three a we third the reminder, and Machine acquired XXXX, Box. quarter Wazee Digital,

with of net XXX% just increased customers due to acquisitions growth to a to the the $XX.X contribution by revenues mentioned customers. existing and Our new $X.X I addition from as million million as well

the total net quarter, revenues. businesses revenues net our our which and is XX% aiWARE first XX% total our exceeded revenues, of from quarter were that they services software This of net

Media Our by in or the Hub million, of including aiWARE XXXX. increased to net $X.X quarter to million million basis, $X.X On revenues SaaS million approximately from aiWARE net Wazee an SaaS $X.X increased revenues organic first from Digital's XX%, and Digital $XXX,XXX, XXX% applications. our $X.X Core

compliance from even included is While you our reflects market a in revenues more the and organic growth vertical year-over-year from traction this large $XX,XXX consider in and that our net quarter. only with when approximately quarter in $XXX,XXX legal impressive compared good vertical project last first the that year this

equally growth was increase year-over-year government SaaS divided to was and roughly our That verticals. and markets $XXX,XXX. Our entertainment our in media organic revenue between other close

net land quarter or our and first and media with we $XXX,XXX, Our as in new by the revenues entertainment XX%, expand customers existing approximately customers. the from increased vertical business continue to

from Our the enforcement from government in vertical in U.S.. net consulting primarily in in projects those market. Two one and three the of collaboration global law were were three UK pilot delivered revenues firm. first in quarter the All was with were a the the

Our monthly recurring $XXX,XXX, of quarter end under which came MRR, approximately effect the aiWARE first SaaS or acquisitions. of or in XXX%, agreements from revenue, approximately $XXX,XXX increased our the by at

quarter bookings were the the in Our million, acquisitions. SaaS first aiWARE from $X.X $XXX,XXX including

and quarter entertainment SaaS bookings government increased acquisitions, in of year-over-year. our our media impact bookings verticals. the majority approximately XXX% and the were first The Excluding of

had content aiWARE million. $X.X revenues and net business Our of services media licensing

quarter is of in quarter. first annual event sporting since from the a its portion first generally The this quarter revenues a a good that in come business major strong occurs

Our $X.X advertising increased to net million, million, revenues contribution including from Bridge. $X.X Performance a $X.X million XX%, or

quarter clients and compared this increased with thanks the first with the combination advertising new by acquisition, Excluding to of growth net a existing our of XXXX, revenues XX% clients.

addition the expenses The increased XXXX stock-based of GAAP total period businesses of of primarily to XXXX operating awards. to third quarter the in GAAP expense This primarily to $X.X continuing while but performance-based $XX.X Our in of acquired million that same operating up from stock additional of the and compensation million we and OpEx. $XX.X to as development. managing due increase compensation all expenses million $X.X software product million in approximately million acquisition-related our year-over-year the the the and stock-based higher of and made acquisitions collectively awards in related invest overhead are $X.X closely, our demonstrates

by keep growth due third will a year-over-year amortization our expenses focus acquired in XXXX. the of and we controlling the to to of we the will which while approximately revenue Depreciation reduce amortization driving use forward, increased cash. Going our on spending, of related intangibles $XXX,XXX businesses quarter

Our loss of of the quarter $XX.X million operations a million with was $XX.X XXXX. in first compared loss from

$XX.X share, or per compared totaled loss net or million, per prior million, net share Our $X.XX a $XX.X $X.XX the year of quarter. with for loss

to our results. turning Now, non-GAAP

reduce of from the and and loss XX% the in or quarter $XX.X to basis. in or XX% year-over-year first of on quarter of $X.X of net are revenues, XXXX. Our we XXXX net management last was a quarter fourth In each continuing expect XXX% year rate adjusted expense prudent XXXX, $X.X or net revenues, EBITDAS leverage of loss million, adjusted million, EBITDAS our to revenues growth in and our down of revenue million first quarter

Our balance sheet strong. remained

cash cash totaling As equivalents of includes from received no March payments we XXXX, of balance cash for cash XX, $X.X securities and and marketable debt. clients and $XX.X long-term The had million. marketable million future securities and

of net shares facility of an of $X.XX at proceeds stock per in average price million. issued share quarter, via first we XXX,XXX resulting During common ATM $X.X the our

Turning to the key to quarter our two factors I'd impact the of revenues first guidance. mention quarter comparison outlook. our that to second net like

First, vertical SaaS our generated pilot projects. QX government from aiWARE from in revenues the were three

not We government are or the negotiations customers ongoing, yet guidance. of our consulting our to revenue from we agreements. working have into annual any longer their to are partner transition projects with and firm these as But global two factored

with yet include those our media recent this and is that $XXX,XXX to our services in to normal difficult remarks. and The decrease net not Based on quarter revenue QX our for million other that revenues back seasonal $XX.X revenue expected between trends, range second is be approximately million our content expect from will patterns factor accurately. rate of that Media signed upon media these be quarter $XX.X potential licensing net will our and EBITDAS place in that, by to business. the in loss second Entertainment This clients. And Chad. due and quarter to additional and similar licensing results. factors, the call consider aiWARE I'll our expect first or we adjusted with turn historical planned & by services Chad over to net to and compared we agreements based based advertising the revenues not projects, are the on including have the started content This spending processing archive today, revenues does aiWARE net eDiscovery forecast his and range

Chad Steelberg

Pete. Thanks,

momentum XXXX. early are IPO we diversification since to diversification and we revenue our start months, The points our pleased products, channel, huge see us we aggressively forward upcoming This with standpoint In happening. further our opportunities for see very the revenue the discussed and is from geography, is technology. to are encouraging to of our verticals, channels. move to have that takeaway pursue operational the expect product, We inflection across

we Over weeks, and directly forward several analysts. investors look our to the next connecting with

we week in of be the Minneapolis. be the week in Then New XX, York will conference on attending Emerging we Conference at May one-on-one Growth City. Oppenheimer the Next will Craig-Hallum,

Finally, would we questions to or contact will London To Brian week encourage the the institutional any out ROTH like Annual XX events. London the all these Xth arrange reach or to about of Q&A to we for with in meetings events, brokers these please at respective their begin June investors of be I session. Operator, Conference.

Operator

with first Your comes Chad Craig-Hallum. from question Bennett Instructions] [Operator

Your is open. line

Chad Bennett

the Great quarter and from again execution to on and sides guys. the coming both job that in business. of the good Hey, see beat

Chad Steelberg

Thanks, Chad.

Chad Bennett

Redact verticals other like So but the seems M&E doing behind of and I maybe going mean, in I say the for under proof-of-concepts on really of but mainly also. for it you are like legal maybe driving? going double this is hood to what's something there's And your great, mean, government applications your Chad. seems kind driven and assume momentum It quarter. specifically it's terms IDentify it's I

the real. and coming from maybe it's proof-of-concepts Your verticals What's driving becoming now growth the these new government or traction revenue really revenue whether overall seeing, there? is you're

Chad Steelberg

couple Yes, it's factors. actually a different

to they've federal penetration into the difficult some now large been that the and we're seen federal into specifically brought the applying QX have related at in internationally phase the local On system they're us. both partnerships to working domestically of channel that we've level where some really side, both some is solve and challenging really integrators And the problems. global growth with contracting aiWARE the the market, the with

level, the law really seeing to and and against specifically known IDentify efficacy, of local traction, two being the of local On in surveillance the Redact data, matched up state databases. video-based suspects identify in are terms offender's enforcement, both applications the fantastic through terms able

to I think pilots. couple identified a the technology a since have of the second in the redaction And inception just really well that legal application. with the now suspects regards XXX with over challenges initial we're been successfully is some

So states of legislation disclose a rapid come a from enforcement perspective and to you're their to redacted far – Ohio, other audio be which are version disclosure on video-based timeline public now in seeing law forcing now more many evidence. forced down are information California, a and

And law Veritone's that new so is fitting with compliance new a really opportunity demand. creating redaction perfectly that application market this fantastic is

Chad Bennett

deadline they there – have a so me. standard, to that's So guess? I is that that Is redaction compliance video to with that or be in timeline new a

Chad Steelberg

me it's the effect don't But disclose point probably the two I There's California. days fines if XX – effect in but rapidly in – actually properly that effect up. and fines front in state coming is days is. actually than it's can into goes to into into at go actually them that think before before right Actually in one have July, accelerates look this live start they evidence. of less can't time, went I there redact I XX laws of numbers and actually

Chad Bennett

their options are Chad? than What redact, other

Chad Steelberg

from Premiere number other and to law process, specifically applications the products identifiable in to manual have information where redact manually videos. historically There's of labor, that sit officials they'd this like been heavy faces enforcement personally that have track from like involving personal and down Adobe used – all

Chad Bennett

secondly, days? Yes, some of ownership of okay. kind standpoint talking Are my today they're sounds really of they Great. equity investors, at in about we shareholder, standpoint least kind Acacia guys sit formerly at then I where an and That large you status very disclosing form from think think own interesting. and the Right. I there's comfortable from what confusion of where there. these with And your

Pete Collins

Chad, I'll This Pete. that. take is

that So Acacia their of X.X filed is regulatory interest March indicated filing of the as end million shares. a recently and total

that However, warrants that are at X.X priced includes share. $XX.XX million a

to our of which about shares one average the is basically day's is stock. that actually So in around hold they from XXX,XXX, equal an XXX,XXX to number perspective trading

shares So that decreasing the has hold, in they been the excluding warrants, August. back of amount since

Chad Bennett

Okay. No, color. that's great

about lap should for how me, Pete, organic be basis of And we quarter, last maybe September at guess it'll we the aiWARE in the annualize look December the acquisitions the an so think Thanks. hop on we it we when I SaaS for as off. from I'll helpful. maybe One kind quarter, on one these more think I Pete. business as growth transactions?

Pete Collins

a development the got traction Well, growth government up in with we're was pick we've on we've up seeing first indicate revenue you, of organic Chad quarter, The last basis. as And marketplace good SaaS perspective well the trials XX% our now in that working But quarter pilots that in It the just on our describing Redact proof-of-concept quarter. on as very sector XX% revenue a and amount did IDentify. as additional which there, from the the was traction about was of we an nice. the we're to got. was that

of And don't in any SaaS. and to the continue half very Wazee second start across So acquisitions businesses I'd three out two wouldn't verticals going we're we see other marketplace that, when why we that traction say reason of from Chad, a the perspective, all year. the seeing good anniversary the in

Chad Bennett

Thanks, guys. Nice job again.

Pete Collins

Thank you.

Chad Steelberg

they've prior In of laws investors own Bill able the for records law to new now types were identification. releases. two was those their that and for Assembly required XXXX release laws to bills, so for look as Bill XXX, confidential, treated Thanks, the records to as hey, expanding in Senate that shortening and the California, of law types well for Chad. are agencies most Chad, public and enforcement our deadlines as time I records up requests repealed example, enforcement Yes. response your two

seeing we're to being that continue. in we and similar So laws Nevada actually to both it expect and enacted Ohio,

Chad Bennett

Perfect. Thanks, Chad.

Operator

Your next comes Northland Latimore question Mike from Capital. with

is line Your open.

Unidentified Analyst

Hi. Vijay I'm Latimore. Devar Thanks the land the for number were This is Would ASPs knowing last for taking you of offering. in aiWARE on question. during able about more about my combined interested you Mike little offering? this your combined for bit and impact Wazee a to quarter days speak and the

Chad Steelberg

level come at mean, teams with together. have has extremely the Yes. the integration I a Especially well. pleased gone high way the

parts of Wazee and at In specific to as fact, capabilities search sales for such two have and the and customer other The now of cetera. expands a our real-time like et team. audio NCAAs go-to-market looking integrated have which executives stores, golf, data at the core applications the video-based are capabilities cognitive themselves of the their into product Wazee events now clips events major

So transparency the content at a but our to initiative was ingest only expand accomplished, in not there be provide identifying able into rate, of to again better also part which more real-time. appropriate and clips we've to quicker core

Unidentified Analyst

look? were deals won Okay. Did there you pipeline quarter during the any does or – the how

Chad Steelberg

continues products as both as customers. aiWARE nicely. cross-selling business existing to to to Wazee's the for upselling pipeline well our We're customers expand The Yes.

was interest strong. very the So

that We continue the growth the to QX year. expect see balance to continue of throughout for and

making releases. terms do we In have again we new when on of we're through on comments the and specifically this capability not customers, call. press customers But

Unidentified Analyst

Okay, you. Thank great.

Pete Collins

Thank you.

Operator

Aftahi Your comes Partners. with next Darren from ROTH Capital question

open. line Your is

Darren Aftahi

on for the my there just in Nice bit Attribute. little Thanks seeing? Chad, Second then to with what connects? the a well questions. a cross-sell that Illuminate. the little maybe of you're that deeper dig kind and to One, traction kind talk ability just both given how want taking quarter. And Veritone you as transcends about DMH question how can guys. as of Hey, I on

How you to when currently was to either your Pete, I some government rattled want or off other I media prepared think beta launched be in One going about SaaS. then, aiWARE pilot? paid some clarity. was are Just and get customers gets many and that in And remarks think with the entertainment. are numbers

just repeat those that'd helpful. If be numbers that you Thanks.

Chad Steelberg

perfect. Yes,

Attribute again, this in winning application, the month. about talking earlier the for Product of Award us NAB Radio Year spectacular was the So

I think that's testimony We've and number a to efficacy large from market a different the fit of signed product broadcasters. perspective.

both when in the that's on being also running digital across both radio We the in and number believe have its playing to puts broadcast back for contracting. advertisers. broadcast are network, field a of I runs knowing still happening exactly Yahoo!, a game-changer media the the the pipeline an terms correlating for based actual Google, is this et in for others really abroad. of campaigns those cetera, process that of impact true media, in for but not domestically It such with terms of and their able to response measure but that counterparts, ad on television, as even websites only the

can in the terms The truly in a in Wazee terms that access secret think of side, the sense? benefit DMH difference how in In agencies now be campaigns impacts produce. actually the of quantified are terms the One it's have knows sauce, product. Veritone to It's that the results correlated obviously in our Veritone better better access measured the is And of tight other how intelligence. just terms and doesn't it's that a I placing by upon One having the not based Attribute. to what that really terms leverage One. anything can application to great or of of tremendous product fit value exceeding Veritone it That It makes impact clients, and non-exclusive

Darren Aftahi

advertising is, any guess with you I the kind and you attracted someone are own seeing content where where does. going maybe with they side, and scenarios inventory. or selling given a the It effectively early ecosystem, you're bit I'm become actually of unique too the being have DMH set for kind with it's to that? that content, they're out advertising is of little going look to and both the whole hence If attribution who

Chad Steelberg

it's near clients. aiWARE factor real-time identify help in providing and the and think that though, mean beta that The the doesn't is move I the in second being advertisers it's results still DMH, quite tests really the this audience. now QX. Yes, number too to point case broadcasters run used to have a terms search able that. into being Attribute necessarily they're we've being of appropriate use early in to that to for equation positive. able advertising time. their Attribute really the been content quantify to of appropriate your I value about in question, deliver themselves by of In To at Illuminate, on the to right

We customers dozen a pilots the half we standpoint the in in some type unpaid issues revenue traction platform of expect or and coming QX. of to out a gain go-to-market from to see, that some call expect onto as pilots paid really it, in QX work

Pete Collins

was the And me question rattling the up pick numbers Darren, let you off. about I had

and back Let time. me can it over see go a I second go if

year $X.X a this were from a revenues $XX,XXX the million, compliance in business, year included we our But that and and year. year ago this on SaaS vertical were So they vertical $XXX,XXX million. they had $X.X organic legal only and our ago, about

was large a the called had quarter project in that last we know, out first year. you there As

entertainment increase increased So about really both the what and of $XXX,XXX across the revenue $XXX,XXX was of the verticals. government media and drove

was with the So combination increase. system new consulting primarily delivered a three Two projects then clients pilot in with government as on $XXX,XXX and and that of entertainment, a – from global as consulting of XX% or $XXX,XXX side, one over year-over-year land expand clients of U.S. firm. the were And and it increase the revenue about the those firm media the in global it's existing in and was well UK

Darren Aftahi

Great, thanks.

Pete Collins

Yes. Thank you.

Chad Steelberg

Thanks.

Operator

at the further are over this questions I presenters. back There turn Instructions] [Operator the now call time. to no will

Chad Steelberg

our AI the we to you future. operating Thank to joining and on the call. pursue want system progress today's We thank us We our of our mission investors employees, us for on our you building of supporting call. updating on next Operator? for as look forward partners,

Operator

today's concludes call. This conference

You may disconnect. now

Veritone (VERI) 9 May 192019 Q1 Earnings call transcript